This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
GBP/USD turns higher after dramatic sell-off
GBP/USD has started to regain ground lost yesterday after a tumultuous session. With Jacob Rees-Mogg seeking to spearhead a vote of no-confidence, his ability to oust Theresa May will be a key determinant for the pound going forward. If she is replaced by a Brexiteer, we are looking at a very high likeliness of a no-deal Brexit.
However, with May sticking to her guns yesterday, we are starting to see fears ease for now, with the price rising. However, this looks like a retracement, with any near-term upside likely to be met by a bearish downturn before long. As such, any deeper rebound looks like an opportunity to short GBP/USD, with a bearish outlook remaining in play unless we break above $1.3072.
.jpg)
